Novello Technologies Begins Funding For Ultra Low Cost Bitcoin Mining Rigs

Due To New Information That Novello May Be A Scam I Am NOT Recommending Them.  If New Information Is Given By Them To Back Up What They Have Already Given Me That Refutes The Scam Allegations I Will Note It.

Novello is beginning the funding round for their business plan at IndieGoGo to bring high performing, low cost miners to the market.

Novello Technologies Begins Funding For Ultra Low Cost Bitcoin Mining Rigs

In looking at established and new manufacturers, I had run across Novello’s posts in the BitcoinTalk forum about developing a new low cost, high output performance Bitcoin / SHA-256 miner. I contacted them to find out more about it all. Gordon Grainger promptly got back to me, and I have been in touch with Gordon and Novello ever since, keeping an eye on their progress. The concept behind Novello is simple, and Gordon’s own words embody it better than I could.

Gordon of Novello:
Our whole ‘ethos,’ if you will is to try to get mining back in the hands of the amateurs. I’ve done quite a bit of snooping around, and I reckon that at least 85 – 90% of the network power is held by what I would call professional miners, i.e., those with more than 10TH of power. That’s not good for the network, and it’s a powerful deterrent to new miners wanting to participate. I’ve been speaking to one guy in the US who has over $3.5m worth of mining kit from Hashfast and Cointerra, and he seems to enjoy a very cozy relationship with both which in this unusual market makes me very nervous. He’s not alone, and the big players get deals the little guys can’t access which just makes the whole situation worse. He’s had some sparse details about the project, and to my mind has tried very hard to dissuade us from going ahead with it. Wonder why that is?

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[dropcap size=small]G[/dropcap]ordon and Novello are very focused on making mining available to everyone and strengthening the network. Inexpensive and high performing mining hardware a cause I very much support. The hashrate needs to be distributed and mining needs to be more accessible to more people. Novello’s offering on Indiegogo outlines in great detail how and why they are going to go about doing this. With careful research, planning and a solid business plan they have taken away my usual skepticism with new companies that come on the scene.

Here is their mission and timeframe. I think as funding happens this is going to be very achievable for them.

Our Mission:

The goal of our project is to design a custom silicon chip and use it to build a family of Ultra Efficient and Affordable Bitcoin Mining Systems. Our Mission Objectives as a Company are:
• To make Bitcoin mining much more accessible to those on a low budget
• To create a core group of customers that will come back to us again and again for their Bitcoin mining requirements and use innovative programs to help them achieve their financial goals.
• To fund independent academic research to enable continuous development of our mining device technology which will keep our customers competitive no matter how high difficulty becomes.
• To develop our company into a full service, full custom silicon design bureau which will offer small business startups a low cost gateway to prototype chips, costing typically less than US$50k in total.

The Headlines:

– Systems priced from $59 (128GH/s) to $30,000 (120TH/sec)
– Systems financial metrics : $0.25 to $0.5/(GH/sec)
– System power averages 0.30 Joules/Gigahash, at the wall socket.
– Full custom asic chip built in 40nm LP process
– Inbuilt Raspberry Pi with WiFi (except in basic $59 system – needs a host laptop/PC or NOVA – HH)
– All systems come with fully regulated, high efficiency (> 87%) power supplies
– Deliveries will start Dec 2014
– Innovative programs to keep our early contributors competitive!
– Be first to contribute and get the BEST deals!

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The Timescales:

The Gantt Chart below shows the critical paths of the project versus time – if you’re not a technologist it might seem confusing, but it’s here to sketch out what happens when. We plan to Tape Out our design sometime mid August 2014 and get our first packaged prototypes at the end of October. Preproduction of system hardware will commence in September to minimise back end production delays.

Novello Time Frame

We want to make it clear from the start that we have a different business model to our competitors; we want to be a volume supplier but want most of that volume to come from our initial customers in the form of repeat purchases. In return, they will get the best possible deals that we can give them, and access to mining power development programs that will not be made available to those who come later.

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The Financials:

We need to secure funding of approximately $4.2 million to achieve our goal, in return for contributions, our Perks are a range of mining solutions to suit all pockets ranging from only $59 (128 GigaHash/sec) to $2,799 (8 Terrahashes/sec) and even $30,000 for a fabulous 120 Terrahashes/sec! Target funding will enable us to ship all system pledges by the end of March 2015.

Why do we need so much? Well, building a custom silicon chip is very expensive – well over $1 million – and that only gets you a handful of prototypes, and we need tens of thousands of devices to build our contributor’s systems! To simplify things, the pie chart below shows where all the money goes:

Novello Financial Breakdown

In terms of what Bitcoin Mining might mean financially for Contributors, we have a separate section later in the project proposal which covers this.
If we get overfunded, to approximately $11 million or more, we will implement our design in 28nm technology. This will give our contributors an extra 50% of hashing power in their systems!!

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[dropcap size=small]N[/dropcap]ovello has a great team put together as well, and you can read more about it on their Indiegogo project site, but a couple things stood out.

Our systems will be built using a modular approach and most have the capability to add more internal hashing capacity, and all can be easily upgraded without having to buy a completely new system, preserving much of the value of your purchase. With our group experience in design, manufacturing, logistics and quality we know we can make truly consumer-grade products with unrivaled performance, cost effectiveness, reliability and after sales support within realistic timescales and budgets.

I am excited about Novello. I have been so shell-shocked by so many scams and rude companies like KNC and Butterfly Labs as well as start-ups that take investment money and run that I am very wary of new companies. Gordon and Novello have put my fears to rest with their open and structured approach. Novello’s professional behavior is refreshing as well.

Here is a quote from their Indiegogo site.

Q. Will Novello be mining Bitcoins as well as making Rigs?

A. That’s clearly a case of Conflict of Interest, so no. Who on earth would want to buy from a company that’s a direct competitor? Worse still, how could any normal company with any ethics expect their customers to accept such behaviour?

Not many ASIC miner manufacturers will do that. Spondoolies-Tech and now Novello come right out and say they will never mine on customers equipment.

I have spoken to so many people that want to get into mining yet the steep costs for mining equipment that is competitive can be a huge detractor. I would love to be able to afford more powerful mining equipment to review and talk about with the community, but my budget does not allow me to. Novello would change that in a big way by making it affordable for everyone.
The more I have learned about Novello and spoken with Gordon, the more I realize they can succeed and bring mining to more people. Their goals are clear and focused.
Go over to their IndieGoGo site and check it out.  Novello has a very detailed project deposition on Indiegogo. Novello could be the next big change coming to mining and the Bitcoin industry if they get the funding.  Their funding tiers are varied and also give the donators early access to the mining equipment. I feel Novello is a good company to support and help grow our growing Bitcoin and crypto currency industry.

USB Miner Conceptmore
$per GH 450more
$per GH 500more
Timescalesmore
Fund Distribution Pie Chartmore

This post was last modified on (Eastern Time): 11/06/2014 05:54

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Scott Fargo @TalonTech1

I am a disabled former Systems Admin, computer tech, business manager enjoying crytpo currencies. I am deeply involved in the mining ecosystem and physical coins, It fascinates me how it has brought people from all over the world together into a tight knit supportive community with commerce and tech.

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